Gas prices on the rise in wake of Hurricane Harvey

VICTORVILLE — Commuters across the nation and the High Desert are expected to pay higher gas prices due to the affects of Hurricane Harvey.

Gas prices have risen nearly 15 cents nationally since the Independence Day holiday and are expected to rise dramatically through the Labor Day weekend and beyond as Texas refineries continue to deal with closures caused by the massive hurricane.

At nearly $2.37, the national gas price average is about 4 cents more expensive on the week following one of the largest one-week national gas price surges seen this summer, according to the Automobile Association of America.

“The impact could linger for several weeks or longer, depending on how long it takes Texas refiners to return to normal operations,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.com. “In addition, the situation could worsen should more shutdowns or outages happen in the coming week as Harvey continues to drop feet of rain on already flooded Texas."

DeHaan said refinery closures along the Texas coastline will affect the “delicate balance of supply and demand,” causing prices to rise from rural towns in the “Rockies to major cities in the Midwest and West Coast.”

High Desert commuters are paying nearly $2.92 per gallon on average, nearly 30 cents higher than last year during the same time period. Local prices for the week are roughly 7 cents lower than the state’s average, but nearly 60 cents higher than the national average.

About one quarter of oil refining capacity in the Gulf Coast had been taken offline, which equates to about 2.5 million barrels a day, according to forecasts by Oil Price Information Service.

“No doubt Harvey has impacted operations and access to refineries in the Gulf Coast. However, a clear understanding of overall damage at the refineries is unknown,” said AAA spokesperson Jeanette Casselano. “Despite the country’s overall oil and gasoline inventories being at or above five-year highs, until there is clear picture of damage and an idea when refineries can return to full operational status, gas prices will continue to increase.”

Harvey is expected to continue to impact the region through the middle of the week with an additional 15–25 inches of rain expected over the middle and upper Texas coast through Friday.

Some analysts say the impact of the hurricane may be felt globally and affect energy markets for weeks as numerous refiners shut down due to the floods, Fortune said.

Rene Ray De La Cruz may be reached at 760-951-6227, RDeLa Cruz@VVDailyPress.com or on Twitter @DP_ReneDeLaCruz.